Question

Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual unemployment rate is 11 percent. What is the difference between the natural rate of unemployment and the actual unemployment rate?

1) 6 percent
2) 7 percent
3) 8 percent
4) 9 percent

Answer 1

The difference between the natural unemployment rate (5%) and the actual unemployment rate (11%) is 6%.

Step-by-step explanation:

The difference between the natural rate of unemployment and the actual unemployment rate is calculated by subtracting the natural rate from the actual rate. In the given scenario, the natural rate is 5 percent, and the actual rate is 11 percent. Thus, the difference is 11 percent minus 5 percent, which equals 6 percent.